FERNDALE, Wash., June 13 /PRNewswire-FirstCall/ -- International Absorbents Inc. , a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the first quarter ended April 30, 2008.
Sales for the first quarter of fiscal year 2009 increased by 1% to a record first quarter level $8,461,000, versus $8,365,000 for the first quarter of fiscal year 2008.
Gross profit for the first quarter of fiscal year 2009 was $2,510,000 compared to $2,767,000 for the comparable quarter during the prior year. Increased costs were primarily a result of higher depreciation, plus increases in the costs of raw materials, maintenance and labor. Improvements in shipping logistics were offset by increased fuel surcharges for freight during the period.
Net income for the first quarter of fiscal year 2009 was $343,000, a decrease of 43% versus a net income of $623,000 for in the first quarter of fiscal year 2008.
"Last year's first quarter sales were exceptionally good at the expense of lower sales in later quarters. The fact that this year's first quarter sales exceeded last year's but on the basis of a much more even growth curve is a compliment to our sales groups." stated Gordon L. Ellis, Chairman of International Absorbents Inc. "We are particularly pleased that this has taken place in what appears to be a struggling overall economy. In order to take full advantage of continued sales growth and ensure that we have staying power if the struggling economy does affect us directly we must focus on further controlling our costs. We are well into incorporating additional initiatives to stabilize and reduce raw material costs and reduce maintenance costs."
International Absorbents Inc. develops, manufactures and markets patented and proprietary, cost effective consumer and commercial products derived from recycled, renewable materials. These environmentally safe products outperform conventional products used in a broad range of consumer and industrial applications, including retail/commercial pet bedding and litter, oil and hazardous liquid spill cleanup and control, oil/water filtration, and packaging. Further information is available at http://www.internationalabsorbents.com/.
FINANCIAL HIGHLIGHTS
3 Months Ended Apr. 30,
2008 2007
Sales, net $8,461,000 $8,365,000
Gross profit 2,510,000 2,767,000
Net income before taxes 637,000 1,034,000
Net income 343,000 623,000
Basic earnings per share 0.05 0.10
Weighted average shares (basic) 6,410,000 6,410,000
As at Apr. 30, As at Jan. 31,
2008 2008
Total assets $29,003,000 $28,589,000
Stockholders' equity 18,139,000 17,689,000
Contact:
Charles (Chuck) Tait
International Absorbents Inc.
Toll Free: 866-514-6559 or 604-681-6181
A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, including without limitation, statements referring to the Company's future growth strategies, prospects for the future, potential financial results, capacity to improve profitability, intent to improve production efficiencies and decrease costs, ability to expand and grow its markets and product lines, abilities to enter new markets, ability to introduce new products, benefits from infrastructure improvements and the Company's competitiveness and profitability as a result of new sales and marketing programs, are forward-looking statements. The words "believe," "expect," "intend," "estimate," "assume" and "anticipate," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, changes in energy and transportation costs, and it is important to note that the Company's actual results could differ materially from those projected, due to various risk factors. Those risks include, but are not limited to installed equipment performance, consumer acceptance of the Company's products at a new location, competitor reactions and their ability to market and price their products, general economic conditions outside of the control of the Company, and the economic availability of sources of raw materials to meet demand rates necessary to sustain growth. Additional information concerning factors that could cause actual results to differ materially from those in the forward- looking statements is contained from time to time in the Company's reports filed with the SEC, including, but not limited to, the Company's annual report on Form 10-K for the fiscal year ended January 31, 2008 and its quarterly filings on Form 10-Q. This press release speaks only as of its date, and the Company disclaims any duty to update the information herein.
